The standard 2/20 fee structure presents a bias in the managers favor. Managers get paid regardless of performance and have an incentive structure when there is increased performance. The problem is that when performance is poor, fees are unsustainable and does not generate a favorable return for the investor.
Globus has an investment philosophy “If we don’t make you money we do not deserve yours.” With Globus Token, fees are 100% performance based. Benchmarks are set at 10% annual returns to investors. Only once this benchmark is reached, does Globus Token collect a performance-based share above these benchmarks as incentive.